Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2016

Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis

The tables below present the recorded amount of assets measured at fair value on a recurring basis at September 30, 2016 and December 31, 2015. No assets were transferred from one hierarchy level to another during the first nine months of 2016 or 2015.


					Significant
					Other		Significant
			Quoted		Observable		Unobservable
			Prices		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
September 30, 2016
Securities available for sale:
U.S. Treasury	$	-	$	-	$	-	$	-
U.S. Government agencies		32,430		-		32,430		-
Mortgage-backed		141,695		-		141,695		-
Equity		663		-		663		-
Total	$	174,788	$	-	$	174,788	$	-

					Significant
					Other		Significant
			Quoted		Observable		Unobservable
			Prices		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2015
Securities available for sale:
U.S. Treasury	$	5,079	$	5,079	$	-	$	-
U.S. Government agencies		49,529		-		49,529		-
Mortgage-backed		156,916		-		156,916		-
Equity		641		-		641		-
Total	$	212,165	$	5,079	$	207,086	$	-

Fair Value of Assets Measured on Nonrecurring Basis

The tables below present the recorded amount of assets measured at fair value on a nonrecurring basis at September 30, 2016 and December 31, 2015. No assets were transferred from one hierarchy level to another during the first nine months of 2016 or 2015.


					Significant
					Other		Significant
			Quoted		Observable		Unobservable
			Prices		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
September 30, 2016
Impaired loans
Construction	$	8,723	$	-	$	8,723	$	-
Residential real estate		7,749		-		7,749		-
Commercial real estate		6,944		-		6,944		-
Commercial		36		-		36		-
Consumer		99		-		99		-
Total impaired loans		23,551		-		23,551		-
Other real estate owned		2,197		-		2,197		-
Total assets measured at fair value on a
nonrecurring basis	$	25,748	$	-	$	25,748	$	-


					Significant
					Other		Significant
			Quoted		Observable		Unobservable
			Prices		Inputs		Inputs
(Dollars in thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
December 31, 2015
Impaired loans
Construction	$	10,979	$	-	$	10,979	$	-
Residential real estate		7,511		-		7,511		-
Commercial real estate		7,422		-		7,422		-
Commercial		161		-		161		-
Consumer		114		-		114		-
Total impaired loans		26,187		-		26,187		-
Other real estate owned		4,252		-		4,252		-
Total assets measured at fair value on a
nonrecurring basis	$	30,439	$	-	$	30,439	$	-

Schedule of Estimated Fair Values of Financial Assets and Liabilities

The following table provides information on the estimated fair values of the Company’s financial assets and liabilities that are reported in the balance sheets at their carrying amounts. The financial assets and liabilities have been segregated by their classification level in the fair value hierarchy.


	September 30, 2016				December 31, 2015
			Estimated				Estimated
	Carrying		Fair		Carrying		Fair
(Dollars in thousands)	Amount		Value		Amount		Value
Financial assets
Level 1 inputs
Cash and cash equivalents	$	75,125	$	75,125	$	73,811	$	73,811

Level 2 inputs
Investment securities held to maturity	$	3,809	$	3,931	$	4,191	$	4,243
Loans, net		851,939		857,905		786,798		788,187

Financial liabilities
Level 2 inputs
Deposits	$	992,295	$	954,257	$	975,464	$	922,161
Short-term borrowings		5,000		5,000		6,672		6,672